Advertisement

Exchange Rate Management in Interdependent Economies

From Williamsburg to Louvre

  • Silke Fabian
Book
  • 162 Downloads

Part of the Handeln und Entscheiden in komplexen ökonomischen Situationen book series (HANDELN, volume 9)

Table of contents

  1. Front Matter
    Pages i-xviii
  2. Introduction

    1. Silke Fabian
      Pages 1-12
  3. Official Central Bank Interventions

    1. Front Matter
      Pages 13-13
    2. Silke Fabian
      Pages 25-55
    3. Back Matter
      Pages 57-58
  4. International Exchange Rate Management

    1. Front Matter
      Pages 59-59
    2. Silke Fabian
      Pages 61-78
    3. Silke Fabian
      Pages 79-97
    4. Silke Fabian
      Pages 99-111
    5. Back Matter
      Pages 113-114
  5. Empirical Analysis

    1. Front Matter
      Pages 115-118
    2. Back Matter
      Pages 141-141
  6. Back Matter
    Pages 143-172

About this book

Introduction

With the breakdown of the Bretton Woods System and the begin of floating between the major currencies, central banks have been formally freed from their obligations to defend the fixed parities of bilateral exchange rates. Nev­ ertheless, since then there have been countless occasions on which monetary authorities have officially intervened in the foreign exchange market. More­ over, numerous studies indicate that exchange rates have been much more variable than originally anticipated - in real and in nominal, as well as in short run and longer run measures (see for example Hesse and Braasch [1989] and Marston [1988]). Through the experience of high real sector costs, the topic of optimal exchange rate management soon reentered policy discussions. The term exchange rate management encompasses both the choice of ex­ change rate regime as well as active intervention policies within the given 1 system. Much of the recent policy discussion has focussed on the first issue, in particular proposals of how to reform the present international monetary order. And new systems such as the European Monetary System (EMS) have emerged for subgroups of countries. However, the question of finding the optimal system has not yet been resolved.

Keywords

Bundesbank Central Bank Policy Exchange Rates Geldpolitik Interdependent Economy Monetary Policy Portfolio Wechselkurse Zentralbankpolitik

Authors and affiliations

  • Silke Fabian
    • 1
  1. 1.Department of EconomicsGeorge Washington UniversityUSA

Bibliographic information

Industry Sectors
Finance, Business & Banking